Suditi Industrie - Suditi Industrie

📊 BSE: 521113 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Domestic sales grew 30.10% YoY to INR 85.33 Cr in FY25, while other income declined 66.05% to INR 1.21 Cr. Total income increased 26.97% to INR 86.54 Cr.

Geographic Revenue Split

The company derives a significant portion of its revenue from domestic sales (INR 85.33 Cr in FY25). Major export destinations include the U.S. and EU, which are critical for its readymade garment division.

Profitability Margins

Operating profit margin improved significantly from -16.34% in FY24 to 1.73% in FY25. Net profit margin also turned positive at 0.03% compared to -0.20% in the previous year.

EBITDA Margin

Standalone EBITDA margin was 8.08% in Q1-FY20 (INR 2.4 Cr), representing a 139 bps improvement over Q1-FY19 (6.69%). Consolidated EBITDA margin for Q1-FY20 was 7.07%.

Capital Expenditure

The company acquired a reputed brand in FY25 at a cost of INR 19.38 Cr, which is being amortized over a 20-year useful life.

Credit Rating & Borrowing

The company's long-term bank facilities (INR 27.00 Cr) were downgraded to CARE B-; Stable (Issuer Not Cooperating) in November 2024. Short-term facilities (INR 1.00 Cr) are rated CARE A4.

⚙️ Operational Drivers

Raw Materials

Key raw materials include fabrics and crude oil derivatives (which impact synthetic fiber costs). Specific cost percentages for each are not disclosed.

Import Sources

Not explicitly disclosed, though the company notes sensitivity to global supply chain disruptions and weather patterns affecting input availability.

Capacity Expansion

The company operates its own manufacturing facilities for fabric processing and readymade garments to reduce costs and improve margins. Specific unit capacity is not disclosed.

Raw Material Costs

Raw material costs are sensitive to crude oil price fluctuations and weather patterns, which can squeeze margins if input costs rise faster than product pricing.

Manufacturing Efficiency

Inventory turnover ratio improved by 103.9% YoY to 25.61 in FY25, indicating significantly higher efficiency in moving stock.

Logistics & Distribution

High logistics costs are identified as a structural challenge that hinders productivity and global competitiveness.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth is driven by transitioning from transactional orders to long-term strategic partnerships, acquiring established brands (INR 19.38 Cr investment), and raising capital through preferential allotments (1.32 Cr shares) to fund expansion.

Products & Services

Readymade garments (RMG), casual wear, sportswear, active wear for men, women, and kids, and processed fabrics.

Brand Portfolio

Riot (casual fashion wear) and licensed clothing lines for various international sports clubs.

New Products/Services

Licensed clothing lines featuring brand logos of international sports clubs and expanded active wear collections.

Market Expansion

Focus on increasing domestic sales, which grew 30.10% in FY25, and establishing visibility through value-added strategic partnerships.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Partnerships with large retailers for brand-name manufacturing and licensing agreements with international sports clubs.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainability, requiring investments in ESG certifications and traceability. There is a trend toward casualization and active wear in consumer behavior.

Competitive Landscape

The industry is highly fragmented with a large unorganized segment and significant competition from other MSME clusters.

Competitive Moat

Moat is built on brand ownership (Riot) and unique licensing rights for international sports clubs, which are sustainable due to brand loyalty and contractual exclusivity.

Macro Economic Sensitivity

Highly sensitive to GDP growth in India and economic conditions in the U.S. and EU. Inflationary pressures impact both consumer demand and input costs.

Consumer Behavior

Increasing demand for sportswear and casual fashion wear is driving the company's product mix strategy.

Geopolitical Risks

Trade barriers and global economic uncertainties in major export markets (US/EU) pose significant demand-side risks.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution norms, labor laws, and international manufacturing standards required by global apparel buyers.

Environmental Compliance

Global buyers are increasingly mandating sustainability certifications and ESG initiatives, necessitating investment in traceability and green certifications.

Taxation Policy Impact

The company reported a tax expense of INR 0.4 Cr on a PBT of INR 0.8 Cr in Q1-FY20. Historical effective tax rates were approximately 35% in FY19.

Legal Contingencies

The company reported no pending proceedings for holding benami property. Other specific legal case values were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Non-cooperation with credit rating agencies (CARE) creates information risk for lenders. Volatility in crude oil prices and weather patterns impacts raw material costs.

Geographic Concentration Risk

Significant revenue concentration in the domestic Indian market and export reliance on the U.S. and EU.

Third Party Dependencies

The company outsources the manufacturing of its 'Riot' brand and licensed clothing lines, creating dependency on external vendor quality and timelines.